HB 803, HCA 1 -- STREAMLINED SALES TAX

CO-SPONSORS:  Bray, Kennedy

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 9 to 4.

This bill creates the Simplified Sales and Use Tax
Administration Act.

The act allows the State of Missouri to enter into the
Streamlined Sales and Use Tax Agreement with one or more states
to simplify the sales and use tax laws and brings the laws into
general conformity among the agreeing states.  The act also
allows the state to continue negotiations with other states to
determine the best approach for obtaining conformity.

The Department of Revenue is permitted to adopt administrative
rules and procure goods and services in furtherance of the
cooperative agreement.

The act also provides for the development of certified service
providers for the purpose of collecting and remitting sales and
use tax on behalf of sales and use taxpayers.

The bill will become effective January 1, 2002.

HCA 1 -- Changes the membership of the delegation representing
Missouri from 4 members appointed by the Governor to 2 members
appointed by the Governor and one member each from the House of
Representatives and the Senate.

FISCAL NOTE:  Total Estimated Net Income to Various State Funds
of $0 to Unknown in FY 2002, FY 2003, and FY 2004.

PROPONENTS:  Supporters say that the bill will allow Missouri to
continue in the discussions on the national effort to streamline
sales and use taxes.  Since Missouri's sales tax law is one of
the most complex in the nation, it is vitally important for us
to remain involved in the formation of any recommendations.

Testifying for the bill were Representative Bray; Department of
Revenue; and Missouri Retailer's Association.

OPPONENTS:  Those who oppose the bill say that some of the early
recommendations of the task forces could lead to problems with
Missouri's tourism revenues and could impose additional taxes on
domestic utilities of the citizens of Missouri if implemented.

Testifying against the bill was Missouri Chamber of Commerce.

Bill Tucker, Assistant Director of Research

Missouri House of Representatives
Last Updated November 26, 2001 at 11:45 am